Forex Outlook: USD/CHF, USD/JPY, CHF/JPY, XAU/USD

Buying USD/CHF 0.9675

(Ian Coleman M.S.T.A. – Educate2accumulate)

TL Entry 0.9674.

Stop loss 0.9598.

Profit 1.0478.

Return Ratio 10.4.

Bat formation

Daily recommendations on major – USD/JPY

(AceTrader Team)

USD/JPY – 144.71

Despite dollar’s brief gain to a fresh 24-year peak of 145.89 after BoJ’s dovish hold last Thursday, subsequent selloff to 140.36 on BoJ’s ‘unilateral’ yen intervention suggests a temporary top is made, gain to 144.90 on Tuesday signals correction is possibly over.

As usd has risen from 143.92 (Wednesday), above 144.90/00 would head to 145.40/50 whilst below 143.92 would yield weakness towards 143.54, then 143.26/28.

Data to be released on Thursday

Italy producer prices, EU business climate, economic sentiment, industrial sentiment, services sentiment, consumer confidence, Germany CPI.
U.S. GDP, PCE prices, initial jobless claims, continuing jobless claims, Canada GDP and average weekly earnings.

CHF/JPY drops on Thursday but the main sentiment remains positive

(Tomasz Wisniewski – Axiory Global Ltd.)

Recent moves on the yen are definitely eye-catching and bring interesting trading occasions. In today’s analysis, we have the yen paired with another safe haven currency – The Swiss franc. Yes, the same one that recently jumped out of negative interest rates territory.

CHFJPY was heavily affected by the FX intervention in Japan (orange). After the intervention, the price went slightly higher and then closed itself for a few days inside of a rectangle (grey). Yesterday, this sideways move finished, with the price breaking the resistance (blue) and moving upside. CHFJPY reached lows from the middle of September (yellow) and that’s where the bullish correction stopped.

What we’re witnessing now is a bearish correction again but our sentiment on this instrument is rather positive. Why?

Well, this drop is rather a normal price action movement of a broken resistance being tested as the closest support (blue). Apart from that we have three more key supports below. Red and green mid-term up trendlines and the black, long-term one. As long as the price stays above those three, the sentiment is definitely positive.

XAU/USD, “Gold vs US Dollar”

(RoboForex Team)

As we can see in the H4 chart, XAUUSD is trading below the 200-day Moving Average, thus indicating a descending tendency. The Relative Strength Index has rebounded from the descending trendline. In this case, the price is expected to test 4/8 (1625.00), break it, and then continue moving downwards to reach the support at 3/8 (1593.75). However, this scenario may no longer be valid if the price breaks the resistance at 5/8 (1656.25) to the upside. After that, the instrument may reverse and resume growing towards 6/8 (1687.50).